Decision Making under Risk and Uncertainty PART 1 | Introduction, Strategy, State of nature, Payoff
Автор: Hybrid Accounts
Загружено: 2022-08-30
Просмотров: 1150
Описание:
Strategy is a course of action to be taken.
State of nature is what the decision may encounter when being undertaken.
Payoff is the return earned for a given strategy and state of nature.
Risk means Probabilities of occurence of events are known.
Uncertainty means Probabilities of occurence of events are not known.
#uncertainty #payoff #decisionmaking
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